10 Questions Every Investor Should Ask About Phoenix Energy
Phoenix Energy presents a compelling investment opportunity through its fixed-rate corporate bonds, structured to offer consistent income in a traditionally volatile market.
Designed for both accredited investors and non-accredited participants in select states, their bond programs feature interest rates ranging from 9% for 1-year maturities up to 13% for 11-year terms, providing flexibility and attractive yields tailored to various investment horizons.
The company’s direct-to-investor approach bypasses traditional middlemen, enabling stronger alignment between asset acquisition decisions and investor returns.
By strategically deploying capital into oil and gas assets with recurring revenue streams, Phoenix Energy seeks to optimize yields and distribute reliable monthly payouts or monthly compounding interest—all depending on investor preference.
Since its inception, Phoenix Energy has demonstrated a trusted track record in responsible investor stewardship, having already paid out over $133 million in interest to bondholders.
Their reported investor satisfaction stands at 97.2%, underscoring the transparency and service quality that anchor the company’s investor relationships.
1. Company Overview
What is Phoenix Energy and what does it do?
Phoenix Energy (formerly Phoenix Capital Group) is a U.S.-based, family-owned, diversified oil and gas company.
It focuses on mineral rights acquisition, non-operated working interests, and direct oil & gas production.
Founded in 2019, Phoenix has grown into a fully integrated producer with offices across the U.S. and over 150 employees.
The company rebranded to Phoenix Energy in early 2025, reinforcing its commitment to long-term development in the American energy sector.
2. Financial Performance
How has Phoenix Energy performed financially?
Phoenix Energy has achieved consistent growth over the past three years:
- 2021 Revenue: $36M
- 2022 Revenue: $65M
- 2023 Revenue: $118M
- 2024 Projected Revenue: $280M–$290M
In Q1 2025 alone, Phoenix posted a record-breaking $193.7 million in consolidated revenue, a 17% increase from Q1 2024.
Key Financial Metrics
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Consolidated Revenue | $193.7M | $166.1M | +17% |
| US Division Revenue | $136.1M | $114.2M | +19% |
| Canadian Division Revenue | $57.6M | $52.0M | +11% |
Other financial highlights:
- Debt-to-EBITDA reduced from 19× (2023) to 6× (mid-2024)
- Net debt in Q1 2025: ~$12.2M
- Working capital: $90.6M
3. Market Position
Where does Phoenix stand in the energy sector?
Phoenix Energy ranks among the top independent operators in the Williston Basin. As of late 2024:
- #17 in North Dakota’s Williston Basin
- #33 on the Financial Times list of fastest-growing companies in the Americas
This strong positioning highlights Phoenix’s rapid expansion and regional influence.
4. Technological Advancements
What tech does Phoenix use to stay ahead?
- Adoption of Real-Time Rotary Steering Systems (RSS)
- Proprietary data systems and automation for drilling
- Development of Investor Portal 2.0 (launched in Dec 2024)
- Use of hedging strategies for price stabilization
Their technical innovations have increased daily revenue per rig and reduced operational risk, particularly in shale development zones.
5. Risks and Challenges
What are the primary risks for investors?
Phoenix Energy operates in a complex and volatile industry. Here are five key risk areas:
- Oil & Gas Price Volatility – directly impacts revenues
- Leverage/Debt – although reduced, still above some peers
- Limited Operating History – founded in 2019
- Operational Risks – equipment, environmental regulation, drilling results
- Litigation – currently four active legal cases (Phoenix is plaintiff)
Despite this, the company has hedged 2.5 million barrels at ~$66.83/bbl and maintains a corporate breakeven between $45–50 per barrel.
6. Benefits of Investing
Why do investors consider Phoenix Energy an attractive opportunity?
- Rapid Growth: ~400% increase in revenue since 2020
- Diversified Revenue: mineral rights, working interests, production
- Investor Accessibility: Bonds available via Private Placement
- Strong Yields: Fixed income securities with 9–13% interest
- Transparency: Regular reporting and direct investor support
Investors benefit from both potential appreciation and fixed returns through Phoenix’s hybrid investment structure.
7. Competitive Landscape
Who are Phoenix Energy’s main competitors?
Phoenix competes with major energy players in the Williston Basin such as:
- ConocoPhillips
- Hess Corporation
- Chord Energy
- EOG Resources
Unlike these firms, Phoenix maintains a hybrid role: mineral buyer, working interest holder, and producer. This diversified model reduces exposure to any single revenue stream and supports scalable growth.
8. Leadership and Management
Who is leading Phoenix Energy?
- Adam Ferrari, CEO — chemical engineer and co-founder
- Curtis Allen, CFO
- Over 11 licensed financial professionals in investor relations and capital markets
The Ferrari family’s leadership reflects resilience and entrepreneurial agility, with strong emphasis on growth, ethics, and long-term value.
9. Customer Base and Satisfaction
Who are Phoenix’s investors and partners?
- 4,500+ individual bondholders
- Hundreds of mineral rights sellers in Colorado, Wyoming, and Texas
- Investor satisfaction rate: 97.2% (“Very” or “Somewhat” satisfied)
- Low redemption and complaint rates
This level of trust suggests a strong relationship between Phoenix and its investors.
10. FAQ
What are the most common investor questions?
| Question | Answer |
|---|---|
| What are Phoenix’s revenue sources? | Mineral rights, working interest, oil production |
| What’s their 2024 revenue estimate? | $280M–$290M |
| What’s the typical bond yield? | 9% to 13% annually |
| Are investments registered with the SEC? | No – offered under Regulation D (Private Placement) |
| Where are they headquartered? | Irvine, California |
| Do they pay dividends? | Yes – most recent: $0.20/share in Q1 2025 |
| Any active lawsuits? | Four active (Phoenix is plaintiff in all) |
📊 Summary Table: Ten Investor Questions
| # | Question | Short Answer |
|---|---|---|
| 1 | Who is Phoenix Energy? | Oil & gas firm in mineral rights and production |
| 2 | How financially healthy? | Revenues up 17% YoY; record Q1 2025 |
| 3 | Market position? | Top 20 in Williston Basin, FT Top 50 |
| 4 | Tech strategy? | RSS, investor platform, hedging |
| 5 | Key risks? | Prices, debt, limited history |
| 6 | Why invest? | High yield, strong growth, diversified income |
| 7 | Competition? | Competes with majors, diversified model |
| 8 | Who leads the company? | Adam Ferrari (CEO), Curtis Allen (CFO) |
| 9 | Investor experience? | 4,500+ satisfied investors |
✅ Conclusion
Phoenix Energy presents a compelling opportunity for accredited investors seeking exposure to the U.S. energy sector.
With its rapid growth, diversified operations, competitive bond offerings, and strong leadership, the company stands out in both performance and transparency.
Finally, becoming a Phoenix investor means joining a strategic process driven by proprietary technology. Starting with data-driven asset targeting and debt capital deployment, Phoenix Energy acquires energy assets, cultivates predictable revenue streams, and then flows interest back to investors.
This pipeline—from acquisition to interest distribution—illustrates a scalable and integrated investment model that emphasizes both yield and operational discipline.
